The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-09-29
NO END OF MONEY.
Business Booming in the West,
with Plenty of Money.

Business Booming in the West
with Plenty of Money.
From the St. Louis Globe-Democrat.
The action of the national treasury de-
partment in advertising for the redemp
ton of per cent bonds, was subject OF
comment yesterday, in local banking and
financial circles, the opinion being gener.
ally expressed that it would be more effec'
tive than the recent calls for q per cent
bonds. st. Louis bankers assert, however
that the apparent stringency reported in
the eastern money market is not felt here
and that monetary conditions throughout
the west were never better.
President BUR, of the st. Louis National
bank, said in response to a question:
"The apparent stringency of the money
market in the east is attributable, think,
to the unusual activity in all kinds of
business. The business of the country
has never been more active, and this is
especially true of st. Louis and her terri
tory. All credits are promptly paid,
showing very healthy condition of af-
fairs"
Concerning the suggestion of New York
bankers that the monetary tightness was
due to the increase of reserve deposits in
western banks as the result of the law
authorizing banks of deposit in all cities
of over 10000 inhabitants, President Burr
said 1.-THE increase of reserve deposits
is not material. Chicago and St. Louis,
it is true, have become great money CEN
tiers, and it is probable that there has been
noticeable drainage of money from New
York banks; but not to such an extent on
thataccount as to create any cause for alarm
or to disturb the business of the country.
1 think the secret of the monetary tight
ness, if indeed such condition exists, is
the extreme activity of business and the
consequent demand for money. The
reasons given by the New York bankers, I
think, are entirely wrong"
REAL ESTATE SPECULATION.
President Tut, of the Third National
bank, said: "The increase of reserve de-
posts in the west may affect New York
backs to small degree, but not to the ex-
tent alleged by the bankers. The increase
in the western repositories and the conse
quent drainage from New York banks are
not so great nor so alarming as New York
bankers would have the public believe.
Business has been very active the past
year, and was never in healthier condi-
ton. We find no trouble in securing
money here, and all the country banks re-
port collections good, and are meeting
their obligations promptly. Business
throughout the whole country seems to be
unusually good"
"To what do you attribute the reported
stringency?"
"SimpIy to the fact that real estate
speculation has been exceedingly active
Boston and New York have been the big.
gest investors in western real estate, ncta-
bly, at Kansas City, Wichita and other
towns in Kansas and Nebraska, and in
southern California. AS result much
money has been taken from those cities,
and is now in the west. The effect has
doubtless been felt to some extent in Bos-
ton and New York, and perhaps through
the entire east; but halt has been called
on wild speculation, and investors are no
longer borrowing recklessly. No damage
from that source need now be feared. The
action of the treasury department in ad-
vertising for the per cent. bonds will no
doubt be more effective than the calls for
the Al per cents. This ought to quiet
the fears which seem to exist in the east.
Business was never better, and the gen
eral prosperity of the country never more
assured than now"
COMMERCIAL CREDITS.
The feenng among merchants generally
is very good. The advance in stocks and
the action of the government had pro-
duced complete change of sentiment,
and money, as result, suddenly became
easy, and New Workers have become con-
WINGED that they could get money at any
time on the delivery of the bonds. The
merchant who has been Disseminated
against here because he wanted to get
money on his name instead of collateral,
they say, will now be able to secure the
usual rate. The custom has been for
ninety days to put out the surplus or call
loans with good collateral security, and
good commercial paper has been met
with offers of discount at 8 to 10 per cent,
the banks preferring the lower rates
with collateral security, and the
money within easy reach. There
has, however, been plenty of money
here until within the last thirty days, dur
ing which there has been an unnatural
the banks have loaned down
to about their reserve of 33 per cent. of
their capital and deposits, and have been
unduly nervous. Boston and New York,
which had been carrying large amounts
of commercial paper from st. Louis, have
been sending it here for discount at and
3 per cent, preferring lower rates with
their loans at home. The fact that mer-
chants were being driven outside for their
thus created false strin-
yency and nervousness without reason.
The fact that the elevators have been
carrying such large quantities of wheat,
without any hope of getting it ont within